A reader recently wrote to us wondering what he should do when his COBRA insurance runs out.  Him and his wife have been on COBRA insurance for the last 17 months and have about 30 days to make a plan for when their insurance stops.  They are both in their fifties and they have a daughter for is 24 who is also on their health insurance plan with COBRA.

Many people find themselves in this situation and making a decision about what avenue to pursue can be a difficult one. The major sticking point for this family is whether or not anyone in their family has serious medical needs or a preexisting condition.  If so, a comprehensive private plan is probably the only way to go for those with preexisting conditions.  They will likely need to apply to multiple providers to find a health insurance plan who accepts them and that they can afford.

If no one in the family has a major medical need or preexisting condition, there are more options.  For a comprehensive plan, a private insurance provider will still be the way to go.  However, they could also consider short term, catastrophic, and indemnity plans that are much cheaper.  These plans however are very limited and often have very strict guidelines for what is covered.